Oil prices increased on Monday, with Brent on course to reach $100 a barrel again over escalating tension in eastern Europe, which has raised concerns of supply disruptions.
International benchmark Brent crude was trading at $98.91 per barrel at 0633 GMT for a 5.09% gain after closing the previous session at $94.12 a barrel.
American benchmark West Texas Intermediate (WTI) traded at $96.52 per barrel at the same time for a 5.38% increase after the previous session closed at $91.59 a barrel.
Oil prices have been trading in a highly volatile market, with both benchmarks on Thursday reaching over $100 a barrel for the first time since 2014 over worries of possible supply disruptions after Russia invaded Ukraine.
“The fears of supply disruptions following Russia’s invasion of Ukraine waned on Friday, but the energy sector remained on edge given the evolving nature of the crisis,” said ANZ commodity strategist Daniel Hynes.
Increasing tension in the region and supporting the uptick in prices, Russian President Vladimir Putin has put Russia’s deterrence forces on high alert.
The Russian intervention was met by an outcry from the international community last week, with the European Union, the UK and US implementing a range of economic sanctions against the Kremlin.
Russia has been further isolated as its airlines have been banned from traveling in European airspace and a number of its banks have been kicked out of the SWIFT international banking system.
Investors are now keeping tabs on the meeting of the OPEC+ group on March 2 where the group will discuss the latest market developments and decide how much oil to pump in April.
Some experts say the group may have to agree to step up output to calm the global oil market if the group strongly believes that the market is under threat.
By Sibel Morrow